Quick Read Alibaba (BABA) launched Qwen3.5 on Feb 16. It runs 8x faster and costs 60% less than the prior version. Alibaba’s Qwen app reached 10 million downloads in its first week. The CEO warned Alibaba’s near-term profitability will fluctuate from heavy AI investments. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. Over the past week, shares of Alibaba (NYSE:BABA) fell 4.46%, coinciding with a ...

Core Insights - The 2026 Spring Festival marks a pivotal moment for China's AI industry, transitioning from technical experimentation to widespread public adoption [1][5] - Major tech companies like Alibaba and ByteDance have emerged as leaders in this competitive landscape, showcasing differentiated strategies and impressive operational metrics [1][5] Industry Overview - The Spring Festival AI competition has shifted from merely attracting users to cultivating habits and implementing practical applications, with Alibaba and ByteDance leading the way [5][6] - The competition has resulted in a dual development path for China's AI industry: Alibaba focuses on consumer-oriented applications, while ByteDance emphasizes content creation and innovation [6][18] Alibaba's Performance - Alibaba's Qwen 3.5-Plus model was released on New Year's Eve, achieving the status of the world's strongest open-source model, comparable to Gemini 3 Pro [1][8] - During the Spring Festival, over 1.3 billion AI-assisted transactions were completed, with users making 50 billion requests to the Qwen app, demonstrating its widespread adoption [1][5][12] Technological Breakthroughs - The Qwen 3.5-Plus model features a total of 397 billion parameters, with a significant performance improvement over previous models, achieving a 19-fold increase in inference throughput [10][11] - The model's API pricing is significantly lower than competitors, at 0.8 yuan per million tokens, making it more accessible for developers [10][11] Ecosystem Integration - Alibaba's extensive ecosystem, including platforms like Taobao and Alipay, enables seamless integration of AI into everyday tasks, enhancing user experience and driving rapid habit formation [11][15] - The Spring Festival saw a 372-fold increase in AI-assisted movie ticket purchases, highlighting the model's effectiveness in real-world applications [11][12] Competitive Landscape - The emergence of Alibaba and ByteDance as "dual kings" in the AI sector signifies a shift in China's AI industry towards original exploration, moving away from merely following Silicon Valley [18][19] - The competition between these two companies fosters a healthy industry environment, encouraging innovation and diverse development paths [18][19]

作者 | 贝隆行业研究 数据支持 | 勾股 大数 据（www.gogudata.com） 2026 年春节，成为中国 AI 产业从技术实验室走向全民生活的关键分水岭。 阿里、 腾讯、 字节跳动 等科技大厂纷纷祭出红包补贴、 应用推出、 功能上新等招式，在 AI 赛 道展开百花齐放的春节争夺战。而阿里与字节跳动凭借差异化的战略布局、现象级的应用表现和亮 眼的运营数据，在这场竞争中突围而出，站上中国科技春晚的塔尖 。 除夕 当天 下午 ， 阿里巴巴开源全新一代大模型千问 Qwen3.5-Plus ，性能媲美 Gemini 3 Pro ，登顶全球最强开源模型。 初一 凌晨 ， 千问 APP 发布的数据显示，春节活动期间，全国超过 1.3 亿人第一次体验 AI 购 物，说了 50 亿次 " 千问帮我 " ，千问一跃成为国民级 AI 助手。 图片 来源 ： 公开 资料 阿里 AI 由此在这个春节完成双线爆发：模型全球开源最强， APP 在应用战场狂飙前进。 春节 AI 大战百舸争流 01 当 AI 技术从实验室走向大众生活， 2026 年春节成为各大科技企业争夺用户心智的主战场。 腾讯元宝推出 10 亿元现金红包活动， ...

Core Insights - Alibaba has released its new model Qwen 3.5, which is noted for its significant advancements in architecture and performance, establishing itself as a leader in the open-source model space [1][2] - The Qwen 3.5-Plus model has 397 billion parameters, a decrease from the previous flagship model Qwen 3-Max, which had one trillion parameters, yet it achieves performance levels comparable to Gemini 3 Pro with less than 40% of the parameters [2] - The model utilizes only 5% of its computational resources for each response, resulting in a token cost that is 1/18th of that of Gemini 3 Pro, showcasing its efficiency [2] Model Advancements - Qwen 3.5-Plus incorporates a gating technology that has been recognized at a global AI conference, allowing other tech companies to benefit from its advancements [3] - The model has evolved through various architectural changes, including the introduction of a mixed attention mode that enhances its ability to process information selectively [2][3] - Alibaba's Qwen series is now positioned to compete directly with Google across all modalities, having integrated text and visual data learning from the outset [3] Industry Position - Chinese companies, including Alibaba, are leading the open-source model race, effectively surrounding closed-source models and setting the stage for significant advancements in the industry [3] - The rapid development of models like Qwen 3.5 suggests that the gap between domestic models and the strongest state-of-the-art (SOTA) models is narrowing, with potential for surpassing competitors in the near future [3]

Core Insights - The "Qianwen Please Guest" Spring Festival campaign attracted over 130 million users engaging in various activities such as ordering milk tea, stocking up on New Year goods, purchasing movie tickets, and booking flights and hotels [1] - The feature "Qianwen Help Me" has become a habitual part of users' lives, with a total of 5 billion interactions recorded over the past 11 days [1] User Engagement - Following the launch of the second wave of the campaign on February 14, orders for movie tickets via AI increased by 372 times, with orders from third- and fourth-tier cities surging by 782 times [1] - In the last two days, AI orders for ticket purchases grew by 22 times, while AI bookings for flights and other transportation tickets increased by over 7 times [1] Demographics - Nearly half of the AI orders originated from county-level cities, indicating a significant reach into less urbanized areas [1] - Approximately 4 million users aged 60 and above experienced AI ordering for the first time, highlighting the feature's accessibility and appeal to older demographics [1]

Core Insights - The main theme in the large model industry over the past two years has been "scaling up," but this has led to increased deployment costs, making it harder for companies to afford these models. The performance curve and adoption curve are diverging [1] - Alibaba's release of the Qwen 3.5-Plus model, with 397 billion total parameters and only 17 billion activated, demonstrates a shift in focus from merely increasing parameters to enhancing model efficiency and cost-effectiveness [1][3] Model Performance and Efficiency - Qwen 3.5-Plus surpasses the previous generation Qwen 3-Max and competes favorably with models like GPT-5.2 and Gemini 3 pro in various benchmarks, achieving scores such as 87.8 in MMLU-Pro and 88.4 in GPQA [1][3] - The model's API pricing is significantly lower, at 0.8 yuan per million tokens, which is 1/18 of Gemini 3 pro's price, indicating a new cost structure in the industry [1][8] Architectural Innovation - The industry is experiencing a shift from parameter accumulation to architectural innovation, similar to the transition in the chip industry from single-core to multi-core architectures [3] - Qwen 3.5 achieves efficiency by using only 17 billion parameters for inference, resulting in an 8.6 times increase in throughput for 32K context scenarios and up to 19 times for 256K context scenarios, while reducing deployment memory usage by 60% [3][4] Multi-Modal Capabilities - Qwen 3.5 represents a generational leap to a native multi-modal model, integrating text and visual data from the start, which enhances its capabilities compared to models that assemble components separately [4][7] - The model supports direct input of 2-hour videos and can convert hand-drawn sketches into executable front-end code, showcasing its advanced multi-modal functionalities [7] Strategic Implications - Alibaba's commitment to native multi-modal capabilities positions Qwen as a foundational model for enterprise applications, which inherently require multi-modal functionalities [8] - The collaboration between model architecture, chip optimization, and cloud infrastructure results in a sustainable cost structure, challenging closed-source competitors who rely on performance exclusivity [8][9] Market Position and Growth - Qwen is ranked first in the Chinese enterprise-level large model market, with Alibaba Cloud's market share reaching 35.8% in the AI cloud market, surpassing the combined share of the second to fourth competitors [11][12] - The open-source model ecosystem is rapidly expanding, with over 400 models released and more than 200,000 derivative models created, indicating strong developer engagement and market traction [12] Future Considerations - The competition in the large model industry is transitioning from a parameter race to an architecture race, where efficiency and cost become the core competitive dimensions [12][13] - Questions remain about the sustainability of closed-source models in light of open-source alternatives that match performance and cost, as well as the viability of current assembly methods in multi-modal training [13]

Core Insights - Alibaba has officially open-sourced its new foundational model, Qwen3.5-Plus, which boasts 397 billion parameters but only activates 17 billion for inference, challenging existing models like Google's Gemini 3 Pro and OpenAI's GPT-5.2 [2][4] - The model represents a significant shift towards a more efficient architecture, moving away from traditional dense models to a sparse mixture of experts (MoE) approach, which drastically reduces computational resource requirements [5][6] Group 1: Architectural Innovations - Qwen3.5-Plus achieves a balance of performance and efficiency by integrating linear attention mechanisms with sparse MoE architecture, allowing for a significant reduction in memory usage and increased inference speed [6][8] - Compared to its predecessor, Qwen3-Max, Qwen3.5-Plus reduces deployment memory usage by 60% and increases inference throughput by up to 19 times in long-context scenarios [6][8] - The model's ability to dynamically allocate attention resources allows it to focus on important information while reducing computational complexity, enhancing its overall efficiency [8] Group 2: Native Multimodal Capabilities - Qwen3.5-Plus features a native multimodal design that integrates visual and textual data from the pre-training phase, enabling it to perform complex tasks without the typical losses associated with separate modality processing [9][10] - This capability allows the model to execute tasks such as converting sketches into runnable code or providing code fixes based on UI screenshots, marking a significant advancement in AI's practical applications [10][11] - The model's enhanced video understanding capabilities enable it to process long videos for analysis and summarization, showcasing its potential in embodied intelligence applications [12][13] Group 3: Market Impact and Strategy - The aggressive pricing strategy of Qwen3.5-Plus, with API call costs as low as 0.8 RMB per million tokens, positions it as a disruptive force in the global AI market, significantly undercutting competitors [16][17] - Alibaba's open-source model ecosystem has grown to over 400 models, with more than 20,000 derivative models developed by the community, establishing a robust and active foundation for AI development [17] - The model's support for 201 languages and dialects, with a vocabulary expansion from 150,000 to 250,000, enhances its accessibility and efficiency for low-resource languages, further embedding it in emerging markets [17][18] Group 4: Future Implications - Qwen3.5-Plus sets a new benchmark for open-source models, demonstrating that the path to AGI does not solely rely on closed-source solutions, but can also thrive in an open ecosystem [19][20] - The model's release signifies a shift from a parameter race to a competition based on architectural efficiency, emphasizing the importance of cost-effectiveness, transparency, and collaboration in AI development [18][19] - As the model continues to evolve, it is poised to become a preferred choice for enterprise-level localized deployments, marking a significant milestone in the journey towards AGI [21][24]

Core Viewpoint - The article highlights the significant presence and impact of Chinese brands as TOP sponsors at the Milan-Cortina Winter Olympics, showcasing the evolving landscape of sports marketing and sponsorship dynamics in the context of global events [5][15]. Group 1: Sponsorship Dynamics - The Milan-Cortina Winter Olympics features the highest number of Chinese TOP sponsors, including TCL, Alibaba, and Mengniu, marking a notable increase in Chinese brand representation compared to previous Olympics [5][15]. - The TOP sponsorship program is crucial for the financial support of the Olympics, with companies paying over $300 million per cycle, contributing significantly to the International Olympic Committee's revenue [12]. - The article notes that the TOP sponsorship program has seen a shift in participants, with traditional sponsors like Panasonic and Toyota exiting, while new entrants like TCL and Budweiser are filling the gaps, reflecting changes in commercial power [17][18]. Group 2: Marketing Strategies and Brand Visibility - TOP sponsors utilize various marketing strategies, including prominent outdoor advertising in Milan, to enhance brand visibility during the Olympics, with TCL securing a major outdoor advertising space [7][10]. - The presence of sponsors extends beyond advertising, as they provide services and products within the Olympic Village, enhancing the overall experience for athletes and staff [10][11]. - The article emphasizes the role of technology in enhancing viewer experience, with AI and cloud technologies being utilized for broadcasting and event management, showcasing the integration of new technologies in sports marketing [18][20]. Group 3: Market Expansion and Brand Recognition - Companies like TCL are leveraging the Olympic platform to expand their global business, with TCL reporting a 50% increase in market share in Italy, indicating successful brand recognition efforts [20]. - The article discusses the competitive landscape in the European market, where Chinese brands are gaining market share from traditional Japanese brands, highlighting a shift in consumer preferences [20]. - The need for companies to adapt their strategies to local market conditions in Italy is emphasized, as the market presents unique challenges and opportunities for growth [20].

Core Insights - Alibaba has launched its new generation large model Qwen3.5-Plus, which reportedly rivals Gemini 3 Pro in performance, featuring a total parameter count of 397 billion and an activation of only 17 billion, achieving superior performance with reduced memory usage and significantly enhanced inference efficiency [1][3] Group 1: Model Performance and Features - Qwen3.5-Plus has achieved a major leap in performance, surpassing the previous Qwen3-Max model, with a maximum inference throughput improvement of up to 19 times [1][3] - The model has transitioned from a pure text model to a native multimodal model, incorporating visual and text mixed tokens for pre-training, which enhances its reasoning logic and world knowledge [1][2] - In various authoritative evaluations, Qwen3.5 has demonstrated superior performance in multimodal reasoning, visual question answering, and video understanding, outperforming previous specialized models [2] Group 2: Technical Innovations - The performance improvements of Qwen3.5 are attributed to significant innovations in the classic Transformer architecture, including the integration of gating technology and a hybrid architecture that combines linear attention mechanisms with sparse mixture of experts (MoE) [3] - The model's training efficiency has been enhanced through advanced techniques, achieving a throughput increase of 8.6 times in common contexts and up to 19 times in ultra-long contexts [3][5] Group 3: Application and Market Impact - Qwen3.5's multimodal training has been efficiently executed on Alibaba Cloud's AI infrastructure, significantly lowering the difficulty threshold for native multimodal training [5] - The model has been integrated into the Qwen App and PC, enabling it to autonomously perform tasks on mobile and desktop platforms, thus enhancing operational efficiency [6] - The Qwen App has successfully executed 120 million orders in just six days during the Spring Festival, marking a significant milestone in real-world task execution and commercialization [6] Group 4: Future Developments - Alibaba plans to continue releasing various sizes and functionalities of the Qwen3.5 series models, with a more powerful flagship model, Qwen3.5-Max, set to be launched soon [7] - The Qwen model family has seen over 400 models open-sourced since 2023, with a global download count exceeding 1 billion, indicating strong developer interest and engagement [6][7]

Core Viewpoint - Alibaba Group Holding Limited (NYSE:BABA) is recognized as one of the leading AI stocks experiencing significant growth, with positive ratings from major financial institutions like Morgan Stanley and Jefferies [1][3]. Group 1: Analyst Ratings and Price Targets - Morgan Stanley has reiterated its Overweight rating on Alibaba with a price target of $180, highlighting the strong growth potential of the company's Qwen AI assistant [1]. - Jefferies has also maintained a Buy rating on Alibaba, setting a higher price target of $225, based on expectations that the company's Cloud business will capture a significant share of the growing AI cloud revenue market [3]. Group 2: Growth Potential and Challenges - Morgan Stanley believes that Qwen could evolve into an "all-in-one AI superapp and life assistant," which may enhance Alibaba's share price and revenue growth in its cloud business [2]. - However, the firm cautions that increased marketing expenditures to drive user adoption could result in substantial losses in other segments, estimating these losses could reach approximately CNY 7 billion in the fiscal third quarter [2]. Group 3: Industry Context - Alibaba is positioned as a major player in various sectors, including e-commerce, retail, AI, digital media and entertainment, cloud services, and technology [4]. - The growing adoption of AI and opportunities for AI agents are expected to bolster demand for Alibaba's cloud services, contributing to its market share growth anticipated by 2026 [3].